Reducing the staff of the organization in order to optimize production processes and bring the contingent to the optimum number is not an easy moment in the company’s activities or in the life of an employee who received a notice from the administration about the reduction of his position. This difficult situation knocks even the most persistent out of the usual rut. But in today's article we will not touch on the psychological subtleties of the moment. Consider an important aspect of such a forced dismissal - severance pay with a reduction in staff, its size and timing of payment.

Features of the procedure for layoff redundancy

Considering that Russian employers are not inclined to obey the current legislation, the downsized employee will not be superfluous to control the situation. Firstly, throughout the entire period from the delivery of the notice to the actual settlement, the administration must inform the employee in writing about existing or emerging vacancies. For the company is a serious question. There is an extensive judicial practice of reinstatement of reduced workers who have proven the failure of dismissal in the presence of a number of vacancies that were not offered to them. Secondly, if they are not there, and the dismissal will take place, the employee does not need to write an application for dismissal. This procedure has nothing to do with the dismissal of one's own will, and the role of the application is already played by the notice given to the employee and giving him the full right to receive such a compensation payment as a severance pay for staff reductions.


The current legislation unequivocally interprets the rules for granting compensation in case of dismissal for redundancy. First of all, it is the payment of benefits with a reduction in the amount of the average monthly earnings. Moreover, the reduced employee is paid a period intended for further employment - no more than 2 months from the date of dismissal, taking into account the severance pay already received, based on the same calculation of the average monthly salary. The law provides for the dismissal of an employee on the basis of a written application before the end of the period specified in the notification. In this case, he has the right to count on additional compensation, determined on the basis of the average monthly earnings and paid in proportion to the time remaining before the day of the dismissal. It should be noted that the employee does not lose the right to payment of compensation benefits.

Payments on the decision of the Central Hospital

If a person has registered at an employment center within 2 weeks after being fired, but has not decided on further employment for two months, by decision of this service, the third month of searching for work can be paid subject to several conditions. This allowance is financed by an employer according to a certificate provided by the Employment Center. We also note that the right to pay for the 3rd month of searching for the desired vacancy arises only if no suitable job has been proposed. With two refusals from the proposals of suitable vacancies, this right is lost. The term “suitable vacancy” means a job offer of an appropriate qualification with a salary not less than at the last place of work, and within the limits of transport reach.

Compensation calculation

The severance pay for staff reductions is calculated as the average earnings from the accrued after-wages for the previous 12 months of work divided by the actual hours worked for the same period and multiplied by the number of working days payable. There are no peculiarities in the calculation of compensation payments by the law. We only note that the severance pay for staff reductions is not subject to income tax, and in special cases (if the child is over 18 years old and he is a student on a full-time basis), child support may not be retained.Amounts of wages and indemnity for unused vacation are payable on dismissal when dismissed on a general basis. Naturally, alimony from them are also withheld. Another important rule: the payment of the final payment, the issuance of employment records and certificates of average earnings for the provision to the Employment Center should be made on the day of dismissal. These are the rules.